Designated Funds

DESIGNATED FUNDS POLICY FOR CHERRY GROVE FRIENDS CHURCH
Established on November 24, 2013

This policy sets forth the conditions under which Cherry Grove Friends Church may accept designated monetary gifts. Subject to this policy, Cherry Grove Friends Church (henceforth referred to as “Cherry Grove” or “the church”) may accept financial donations from its members and friends who want to donate to the church and have such donations used to support a specific ministry of the church.

Designated funds created prior to the adoption of this policy will not be impacted by this policy, unless specifically indicated in writing by a donor. Instead, Cherry Grove is legally required to operate under the original terms (verbal or written) that were assumed when the existing designated funds were established. This new policy will only impact new designated funds created after this policy is approved and adopted by Cherry Grove, specifically November 24, 2013.

Cherry Grove Friends Church desires to be careful to assure it is not involved in creating a tax deductible contribution for any purpose that would not otherwise qualify for a tax deduction. For instance, Cherry Grove wants to make sure that a monetary donation to the Love Fund, missions, or other ministries is for the purpose of furthering the ministry of Cherry Grove and not a non-deductible gift to an individual through the church. General tax rules state that if a donor wants their gift to be tax deductible, the donor must transfer control over their gift to the church. Gifts that are designated for the benefit of a specific individual or individuals are not tax-deductible. For this reason Cherry Grove sets forth the following guidelines under which the church, as a tax exempt organization, can accept designated gifts:

1. The designation of a monetary donation must be for an approved project, program, ministry, or charitable organization supported in Cherry Grove’s annual budget. Acceptance of the designation and the funds associated with the designation will signify approval by Cherry Grove Friends Church. If donors wish to support a charitable organization not included in Cherry Grove’s annual budget, the church encourages them to give directly to the organization they wish to support.

2. Cherry Grove Friends Church shall maintain discretion and control over all contributions and the ultimate determination of how all donated funds are allocated. Cherry Grove will make every effort to honor a donor’s designation; however, all contributions become the property of Cherry Grove Friends Church and as such the church has the discretion to determine how best to use all contributions to carry out its mission and purpose. Cherry Grove Friends Church must, by law, reserve the right to disregard designations despite the directive by the individual donor.

3. Monetary gifts designated for individuals or designated for the benefit of a specific individual are not tax deductible contributions and therefore Cherry Grove Friends Church will not accept such gifts.

4. Cherry Grove Friends Church cannot accept gifts with verbal designations. Designations must be in writing in an accompanying memorandum or note or else indicated on the check.

5. Any donation that has not been used within 5 years following the designation may be repurposed to Cherry Grove’s General Budget unless agreement is made at the time of donation for a longer period.

6. Cherry Grove Friends Church reserves the right to refuse or return any donation for any reason. To ensure that all monetary gifts are effectively used, no gift will be accepted which is unduly restrictive, likely to result in a net loss for the church, or designated for a purpose outside of the mission of the church.

7. Cherry Grove Friends Church maintains a designated fund called the “Love Fund.” Its purpose is to allow for gifts of benevolence to persons in financial or other need. Gifts from this fund are at the discretion of the Pastor and Elders. Cherry Grove welcomes gifts to the Love Fund with the understanding that those giving to the fund will not know when and to whom these funds will be dispersed. Cherry Grove recognizes that assisting persons in financial need is a continuing mission of the church and has established this fund as an ongoing fund. Should at any time in the future Cherry Grove Friends Church chooses to close the Love Fund, all money in the fund at that time will be redistributed to the General Budget of the church.

8. In circumstances where donations are made to a designated fund for an activity, ministry, or other item also included in Cherry Grove’s annual budget, expenses will be paid for first out of the designated fund before being paid from the annual budget.